Abstract : The basic question is whether the U.S. should support international control of the Panama Canal or a replacement Atlantic-Pacific Canal. The paper reviews the problems in the area, examines U.S. interests in the Canal and the existing Canal Zone, and evaluates the effectiveness of agreements for control of other canals. Alternative arrangements for control and operation of an Atlantic-Pacific Canal are studied with a view towards international control. It was concluded that the U.S. should relinquish certain rights, activities and land areas of the Canal Zone, but maintain U.S. control of the Canal with the eventual possibility of making it an OAS activity. (Author)